Buttoned Up: Must-have tech tools for streamlining finances

Tuesday

Mar 20, 2012 at 12:01 AMMar 20, 2012 at 8:16 PM

Many people put off organizing their finances because they believe it will be a time-intensive chore. Fortunately, in this day and age, it doesn't have to be. A wide variety of free and fee-based tools exist that can make the entire process as easy as pushing a button or two. But with thousands of personal-finance websites to comb through and app libraries filled with hundreds of options, it's easy to get lost in the weeds.

Sarah Welch and Alicia Rockmore

Many people put off organizing their finances because they believe it will be a time-intensive chore. Fortunately, in this day and age, it doesn't have to be. A wide variety of free and fee-based tools exist that can make the entire process as easy as pushing a button or two. But with thousands of personal-finance websites to comb through and app libraries filled with hundreds of options, it's easy to get lost in the weeds.

That's why we have taken the time to create a short list of the top tools for streamlining your finances. We have organized them into three categories: financial aggregators, expense trackers and debt monitors.

Financial aggregators (for getting clear on the big picture)

When was the last time you zoomed out and took a look at your personal-finance big picture? It is easy to get caught up in the day-to-day management of your accounts. But when you approach finances exclusively from a tactical standpoint, it can be a bit like shooting in the dark. You may cross off tasks, like balancing your checkbook and paying your bills on time, but you cannot be sure your individual steps are taking you where you really want to go in the long run. Happily, there are a variety of (mostly free) tools that can help you get a handle within minutes. Organize your big picture by using one of these tools.

Top Web aggregator: Mint.com

This comprehensive Web-based financial aggregator is owned by Intuit. It organizes all of your account information in one spot, the cloud, which makes it accessible from any device -- desktop, tablet or mobile phone. It connects with virtually every U.S. bank (as long as it has Internet banking), which means setting up your account takes mere minutes. It has excellent security, and it is free. The interface is both beautiful and incredibly easy to navigate. Once you have set up your accounts, Mint calculates your average spending in every category to help you easily create a budget based on your historical spending (increasing the likelihood you will stick to it). You can also input financial goals and monitor your progress against your goals. Bottom line: If you use this tool, your big financial picture will be buttoned up in fairly short order.

High-quality alternates

While we feel Mint.com is the best option in this category, we understand that not everyone is comfortable having his or her financial information in the cloud. For those wanting a computer-based option, we recommend these two paid programs, Quicken and MoneyDance, or this free one, GnuCash.

Tracking receipts and expenses

If you don't track where your dollars are going each month, it is only a matter of time until you break your budget. When that happens, you land right back in that spot where your finances are controlling you, not the other way around. Breaking this vicious cycle has never been easier. There are literally hundreds of apps that make it a cinch to track every penny you spend. We've zeroed in on our three favorites.

Mint.com: When you create a Mint.com account, you can also download the Apple or Android app for free so that you have your complete financial picture with you wherever you go. If you're wondering whether you should buy those shoes, take a gander at your budget before splurging. Mint.com automatically updates expenditures made with an ATM or credit card. But you can also manually enter transactions, too. The app is password protected for added security.

Balance: While auto-updating programs like Mint.com are nice, it is often helpful from an accountability standpoint to have to enter information by hand. Balance is a basic app that tracks the balances on all of your accounts. Every time you make a purchase or a deposit, enter the transaction amount into the app. It then automatically updates your balance information. You'll see pretty quickly how those little ATM fees and lattes add up.

Expensify: If you are in business for yourself or an employee that has to frequently incur business-related expenses, you know how painful the process of filling out expense reports can be. But it is critical; ill-managed expense reimbursements wreak havoc on personal cash flows and budgets. Fortunately, there's Expensify, a spiffy free app that imports expenses and receipts from credit cards, lets you send copies of paper receipts using your mobile phone camera, and makes it possible to submit expense reports through email, and even get reimbursed via direct deposit.

Of course, sometimes pencil and paper is the best way to keep yourself honest about what you are spending, just as writing down your calorie intake is often the best way to keep yourself honest about what you are eating. In that case, there is always this free printable budget tracker from Buttoned Up.

Reducing debt

When you're trying to climb out of debt, you need all the help you can get tracking not only what you have due, but the progress you are making in paying it off. There are a few programs and apps that do a wonderful job of just that.

Top tool: Debt Snowball Pro

This simple app is designed to help you power through debt. It has a very clean, easy-to-use interface. The app's designers have given users three different approaches to eliminating debt. Your accountant will love option 1: Pay off your higher-interest loans first and save the most money. Your amygdala will prefer option 2: Pay off the smallest debts first and work your way up to larger ones so you see a "snowball" effect in paying off debts. Your local stores will like option 3: Pay off the minimum due each month (so you have more to spend with them). Regardless of the option you choose, all you have to do is enter all of your debt information into a debt list once and the app will take it from there.

High-quality alternates

While we love the streamlined interface of Debt Snowball Pro, there are quite a few good apps in this area. Other notable options include: Pay Off Debt, Debt Payoff Planner and iQuick Debt Payoff. Regardless of which option you choose, having a complete picture of how much you have to pay off is a powerful deterrent to profligate spending. Of course, any debt-reduction plan is likely to be aided by a low-tech tool: scissors.

Are you comfortable using tech tools to organize your finances? Which tools do you swear by? We'd love to hear.

The writers are co-founders of Buttoned Up, a company dedicated to helping stressed women get organized. Send ideas and questions to yourlife@getbuttonedup.com. For more columns, go to scrippsnews.com.

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